Climate Change Data

Hana Materials Inc.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:44,371.71 tCO2eq/year
Scope 1 Emissions:1,215.71 tCO2eq/year
Scope 2 Emissions:43,156 tCO2eq/year
Renewable Energy Share:1%
Total Energy Consumption:895 TJ/year
Water Consumption:500 kton/year
Waste Generated:3,086 tons/year
Carbon Intensity:14.44 tCO2eq/EA in 2022

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Installed solar panels on the roof of Asan plant, replacing 1% of the plant’s total electricity with renewable energy in 2023.
  • Reduced energy consumption by 334 MWh in 2022 through various energy reduction activities.
  • Reduced water consumption by 5,344 tons at Asan Plant by modifying the regeneration cycle of the boiler water softener.
  • Reduced air pollutant emissions by about 70% from 395.8 kg in 2020 to 123.5 kg in 2022.

Social Achievements

  • Established a human rights management policy covering 10 areas to prevent human rights violations.
  • Acquired ISO 45001 certification in 2022 for occupational health and safety.
  • Conducted human rights education for all 750 employees (100%) in 2022.
  • Expanded the number of employees with disabilities, hiring more than required by law.
  • Increased the number of training programs from 166 in 2020 to 626 in 2022.

Governance Achievements

  • Established a committee policy for ESG management, including ESG Committee, Internal Transactions Committee, Compensation Committee, and External director candidate recommendation committee.
  • Established a Code of Ethics and Ethical Management Policy, posted on the website.
  • Launched an ethics and compliance reporting channel on its website for anonymous reporting.
  • Maintained a zero violation record of fair trade over the last three years.

Climate Goals & Targets

Medium-term Goals:
  • Establish and implement a company-wide GHG reduction plan by 2023.
Short-term Goals:
  • Reduce GHG emissions by 3.24% compared to the base year (average emission of 2018, 2019, and 2020).

Environmental Challenges

  • Increase of raw materials and oil prices caused by the Russia-Ukraine War and US Federal Reserve interest rate hikes.
  • Downturn of semiconductor market and the US-China trade war.
  • Increase in GHG emission (40% increase compared to 2020).
  • Increase in water consumption due to increased production.
Mitigation Strategies
  • Achieved significant performances, including quality improvement and cost reduction.
  • Adopting and developing ESG management to move forward into a ‘sustainable company’.
  • Establishing a company-wide GHG reduction plan after the completion of Asan Plant 2 in 2023.
  • Managing water resource usage based on unit emissions.

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement
  • Regular consignment contract
  • Safety and health assessments for suppliers exceeding a certain threshold amount
  • Supplier qualification evaluation

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, AA1000AS v3 (2020)

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: BSI Group Korea

Awards & Recognition

  • Presidential Commendation for Labor Management Win-Win Cooperation
  • Presidential commendation from the National Productivity Award
  • Company with Excellence in Employment of Young Generation
  • Company with Excellence in Employment of Permanent workers
  • Excellence in Employment of the Persons with Disabilities
  • Excellent Labor-Management Culture Company
  • Labor-Management Cooperation Presidential Commendation Award
  • Job Creation Contribution Minister’s Commendation